Japanese, U.S. firms win RI power projects

Japanese, U.S. firms win RI power projects

TOKYO (AFP): Japan's Mitsui and Co. Ltd. and Toyo Engineering
Corp. and two companies from the United States have won a 1.8
billion dollar order to build two thermal power stations in
Indonesia, a Mitsui official said yesterday.

The official said the contract, which includes Fluor Daniel
Corp. and Mission Energy Co., is expected to be formally
concluded around the middle of February with the joint venture
which is carrying out the power plant project.

The joint venture, PT Paiton Energy Co., includes both Mitsui
and Mission Energy along with an a subsidiary of General Electric
Co. of the United States and Indonesia's PT Batu Hitam Perkasa.

The overall project is expected to cost US$2.6 billion,
including $600 million to capitalize Paiton Energy, the official
said.

The remaining $2 billion is expected to be funded by a
syndicated loan from eight U.S., European and Japanese banks,
including the U.S. and Japanese export-import banks and
Industrial Bank of Japan Ltd., he said.

The venture will own and operate the Paiton thermal power
plant for 30 years.

Financial arrangements are planned to be completed by Feb. 15,
the official added. But he declined to confirm a Nihon Keizai
Shimbun report that Toyo Engineering alone is expected to win
about $600 million in orders.